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The Ben Hashem (B) and Patel (P) Corporations have the following expected risk and return inputs for the next year Er = 19% ErpL= 23%

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The Ben Hashem (B) and Patel (P) Corporations have the following expected risk and return inputs for the next year Er = 19% ErpL= 23% 88 = 24% 8p = 28% PBP = 0.4 The portfolio risk for a portfolio of 50% in each asset is 23.8844 %. Determine the correlation coefficient that will be to reduce the level of portfolio risk by 35 percent. (8 marks) What is the expected return of equally weighted portfolio? (2 marks)

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